O'Reilly logo

Measuring and Managing Performance in Organizations by Robert D. Austin, Timothy Lister, Tom DeMarco

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter Five. Constructing a Model of Measurement and Dysfunction

To move analysis of incentives beyond the H-M model described in Chapter Four, it will be necessary to build a new model, the model used in the rest of this book. Before we begin, however, there are a few things that should be made clear about any modeling exercise.

What is a model? A model is a simplification; it is, by definition, a departure from reality. When reality is too complex to reason confidently about, it is often useful to extract details of a situation in the form of some simple assumptions, and then to see what can be concluded with confidence from this simpler view of the world. A model takes assumptions and converts them into corresponding conclusions. A modeling ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required